Categorising the Central Bank's Credit Incentive Programs by Targeting and Intensity

Pál Péter Kolozsi, Bianka Parragh and György Pulai

Public Finance Quarterly, 2017, vol. 62, issue 4, 502-523

Abstract: The global financial crisis that broke out in 2007–2008 substantively set back activity in the credit market. Several central banks reacted to this by implementing credit incentive programs. Based on the program parameters, our study evaluated 14 international and Hungarian credit incentive programs launched by central banks in terms of targeting and intensity (strength of incentives). After the outbreak of the crisis, there was a clear trend for credit incentive programs becoming increasingly targeted and highly incentivised, without any clear trends in terms of sizing. The shift from less targeted and less highly incentivised programs towards more targeted, higher-intensity ones was typical both internationally and within Hungary. The Hungarian credit incentive programs introduced after 2013 show extensive targeting and intensity levels, even on an international scale.

Keywords: credit incentives; monetary policy; crisis management (search for similar items in EconPapers)
JEL-codes: E51 E52 E59 H12 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:pfq:journl:v:62:y:2017:i:4:p:502-523

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